Board of Directors Nominations

Encompass Federal Credit Union

Get Involved With Your Credit Union!

In accordance with the bylaws of Encompass Credit Union, application for nominations are being accepted for four (4) open Board of Director positions until January 15, 2025. Consideration for Board membership is available to any Credit union member over the age of eighteen (18) and in good standing with the Credit Union. Current Directors whose terms are expiring include Susie Fitzgerald, Don McElfresh, Evan Smith, and Tabitha Thompson.

Serving as a volunteer on Encompass Credit Union’s Board of Directions is a great way to participate in the democracy that differentiates credit unions from other financial institutions. Members of the Board of Directors have the duty and responsibility to set the direction of the credit union according to the wishes of the membership and in accordance with all pertinent laws and regulations. The Board sets all policies, ensures Encompass maintains its sound financial condition, decides what programs will be offered and what facilities used. Regularly scheduled monthly meetings are normally the evening of the third Tuesday.

 Board Member Duties and Responsibilities

Each member of Encompass Credit Union (“Credit Union”) Board of Directors (“Board”) is elected by the membership to serve a three-year term; or, a remaining term of a previous director. The Board sets the general direction of the credit union and oversees management in the operations of the Credit Union. The Board shall be responsible for the general oversight and final decision-making authority over the affairs, funds and records of the Credit Union in accordance with applicable law, the articles and the bylaws.

Directors must always focus on the best interests of the membership as a whole. Credit unions are not-for-profit cooperatives designed to provide financial services to their member-owners. As such, a credit union’s primary purpose is not to seek the biggest possible profit or return on assets (ROA); nor is it appropriate to seek asset growth just for the sake of growth. The primary purpose of a credit union is to provide quality, low-cost financial services that the membership
needs.

Basic Responsibilities:

·         Make strategic decisions in conjunction with the other Board members regarding the course of action for the Credit Union by establishing goals, objectives, formulating policies and approving services

·         Review all policies annually

·         Hire, monitor and evaluate the CEO

·         Participate in committees as appointed by the Board Chair

·         Ensure Credit Union meets all federal and state regulations and guidelines

·         Maintain, review, and update Credit Union bylaws

·         Maintain the confidentiality of all Credit Union business and information received

·         Attend and actively participate in monthly Board Meetings and the Annual Strategic Planning Session

·         Administer the affairs of the credit union fairly and impartially and without discrimination in favor of or against any particular member

 

Duties:

·         A Board Member must carry out the duties in good faith, in a manner reasonably believed to be in the best interest of the membership, and with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances

·         Thoroughly review information prior to each Board Meeting

·         Be aware of state and federal political issues regarding the credit union movement

·         Disclose possible conflicts of interest and refrain from voting on issues related to the conflict

·         Attend monthly Board meetings (see Required Meetings)

 

Basic Financial Skills Required

The board of directors of a federal credit union is charged with the general direction and control of the institution. Credit unions, however, are not like many other commercial entities in that they do not produce observable physical goods or services. Instead, credit unions receive deposits from the membership and, in turn, lend or invest these funds. The key measure of the credit union’s success or failure is its financial statements. As such, a director must understand these financial statements to participate in a meaningful manner in the direction and control of the institution.

Accordingly, to be an effective director, an individual must have a certain base level of financial skills, consistent with the size and complexity of the credit union operation they serve. At a minimum, directors must have the ability to read and understand the credit union’s balance sheet and income statement. If directors do not have the requisite skills when elected or appointed, they must obtain these skills in a timely manner, as discussed below.

What a Director Should Know

At a minimum, a director should be able to examine the credit union’s balance sheet, income statement and be able to answer the following questions:

  1. What does this line item mean?

  2. Why is it important to the credit union?

  3. Is the value of the line item changing over time? If so, what does that change (either positive or negative) mean?

  4. Is the change important to the credit union?

 

A director must understand the specific activities in which their credit union engages. In particular, a director must understand not only how these activities generate revenue for the credit union but also, and perhaps most importantly, the various risks associated with these activities that could lead to financial loss.

 

To do their job in a meaningful manner, it is essential that directors understand the risks found in depository institutions — that is, credit, liquidity, interest rate, compliance, strategic, transaction, and reputational risk. Moreover, directors must understand the internal control structures at the credit union that limit and control these risks.

 

Required Meetings:

  • Monthly Board Meeting – mostly held on the third Tuesday of each month at 5pm at Encompass Corporate Office at 221 N Main St, Tipton, IN 46072

  • Annual Business Meeting, which takes place in April

  • Annual Planning Session for the rolling three-year business plan

  • Other assigned committee meetings that vary depending on the specific committee

  • Exit reviews by examiners (typically held in conjunction with regular monthly meetings)

 

Board Member Qualifications:

  • Must be a current member in good standing with Encompass Credit Union

  • Must be at least 18 years of age

  • Must be bondable

  • Must authorize a criminal background check and credit check

  • May not be a current or former (within the last 3 years) employee of Encompass or any other financial institution

  • May not be an immediate family member of a current or former (within the last 3 years) employee or volunteer of Encompass or any other financial institution

  • May not be a volunteer or paid board or committee member of a financial institution

 

If the Nominating Committee does not nominate you for the election ballot, you may still be nominated by petition by securing a number of valid signatures from members of Encompass Credit Union who are in good standing. Call for Petition Nominations will occur January 31, 2025, through March 2, 2025.  However, in order to be eligible for nomination by petition you still must meet the first three qualification requirements, or your name will not be added to the ballot.

 

Personal Liability:

Encompass Credit Union carries Directors’ and Officers’ Liability Insurance. This policy protects the credit union’s directors, volunteers and employees from liability arising out of their duties performed for Encompass Credit Union.

 

 Applications should include basic personal data (name, phone, email, address, occupation and education level) as well as other pertinent information (community involvement, skills/knowledge/strengths you would bring to the position, and why you are interested in serving) and should be emailed to nominatingcommittee@encompasscu.org or physically mailed to:

Encompass Credit Union
Attn: Nominating Committee
PO Box 100

Tipton, IN 46072

 

Nominations must be postmarked or submitted no later than January 15, 2025. Elections and terms will be announced at the Annual Meeting of the Membership of Encompass Credit Union on April 16, 2025. That meeting will begin at 8:00 am at the Corporate Office in Tipton. Watch for more information to come.